Posted by: Karim Ali
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What Ottawa Homeowners Forget to Budget For
When homeowners think about moving up to a larger home, the focus is usually on purchase price and mortgage payments. That is only part of the picture. Moving up comes with a series of one time and ongoing costs that can catch buyers off guard if they are not planned for properly.
This guide breaks down the real costs Ottawa move up buyers often underestimate, so you can make the move with clarity instead of stress.
The Costs That Come With Selling Your Current Home
Realtor Fees and Legal Costs
Selling a home involves more than putting up a sign and accepting an offer. Realtor fees and legal costs are part of the transaction and need to be factored into your overall budget. Working with an experienced agent and lawyer is not an area where cutting costs usually pays off. Strong marketing and proper legal handling often protect you from larger financial risks later.
Pre-Sale Preparation Costs
Most move up sellers invest in small improvements before listing. This can include paint, minor repairs, professional cleaning, or staging. These costs are usually recovered through a stronger sale price and faster sale, but they still require cash upfront. Some real estate teams cover those costs for clients.
The Upfront Costs of Buying a Larger Home
Land Transfer Tax and Legal Fees
In Ontario, buyers pay land transfer tax on every purchase, even if they have owned a home before. For move up buyers purchasing a higher priced home, this tax alone can be significant. Legal fees and disbursements are another cost that often surprises buyers when combined with land transfer tax.
Home Inspection and Appraisal Costs
Even when a home looks well maintained, inspections remain important. Larger homes often have more systems, more square footage, and more potential maintenance considerations. In some cases, lenders may also require an appraisal, which adds another cost.
Bridge Financing and Timing Costs
When Bridge Financing Is Needed
Bridge financing comes into play when the purchase of your new home closes before the sale of your current one. This is common for move up buyers trying to secure a specific property without risking the loss of their existing home.
The Real Cost of Bridge Loans
Bridge loans are short term, but they are not free. Interest is calculated daily, and even a brief overlap between transactions can add up quickly. Proper timing and coordination between buying and selling can reduce or eliminate this cost entirely.
Ongoing Monthly Costs That Increase After Moving Up
Higher Property Taxes
Larger homes and higher value neighbourhoods typically come with higher property taxes. This is a long term cost that affects monthly cash flow and should be included in affordability planning from the start.
Utilities and Insurance
More square footage means higher heating, cooling, and electricity bills. Insurance premiums also tend to increase with larger homes, additional structures, or higher replacement values.
Maintenance Adds Up Over Time
Moving up often means more responsibility. Roofs, driveways, furnaces, landscaping, and exterior maintenance all scale with the size of the home. Well maintained or newer properties often cost less over time, even if the purchase price is higher.
Lifestyle Costs Buyers Often Overlook
Furnishing a Larger Space
Moving into a bigger home usually means filling more rooms. Furniture, window coverings, outdoor equipment, and storage solutions can add up quickly, even when purchases are spread out over time.
Commute and Transportation Changes
Some move up buyers choose neighbourhoods farther from work or amenities. This can increase fuel costs, parking expenses, or commuting time. These changes affect both finances and daily quality of life.
How to Budget for a Move Up the Right Way
Plan Around Monthly Comfort, Not Maximum Approval
Just because a lender approves a certain amount does not mean it is the right number for your lifestyle. Budgeting for comfort allows room for unexpected expenses and reduces financial stress.
Build in a Financial Buffer
Unexpected repairs, timing gaps, or lifestyle changes happen. Having a buffer gives you flexibility and peace of mind during and after the move.
That's All!
Moving up is an exciting step, but it should be approached with clear eyes and a realistic budget. Buyers who plan for the full cost of moving up enjoy the transition and the new space. Those who do not often feel the squeeze shortly after moving in.
If you are thinking about moving up in Ottawa and want to understand the numbers before making a move, I am always happy to walk through the options and help you plan the process properly.
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